I received a call today who's husband passed away 2 weeks ago. She has a 3 bed 3 bath. She does not live in property but her son does. The loan balance is about 89k and her house is worth about 50k as is.
How should I handle this situation? subject to, lease option, etc.
Thanks in advance bigger pockets community.
Some might say short sale. I say, you don't need to catch a Carp just because you can.
How do you know it is worth $50K did you have someone to appraisal it? There are deals all over Georgia with no liens and off the market.
@Jon Klaus so its better to walk away from this one?
@Joe Gore well it needs some repairs and county has it valued at 40k. This county usually under values property. The comps in the area are around 93k. I have not had it appraised. Just got the call about 10 min ago.
"Jon Klaus so its better to walk away from this one?"
I would. Much easier if you find a deal with equity.
@Jon Klaus Thanks for the advice. Ill most likely keep it moving and hope my phone continues to ring.
Keep marketing and your phone will ring.
Get comps for ARV
Get a builder in.
Maybe do a JV w the seller
Provide rehab services in the form of a JV Agreement, use a private lender, list it with an agent as soon as the rehab starts, get private money for the rehab costs, get a lien against the house for the rehab costs, including interest, and make $10K for a JV fee to fix the problem.
@Brian Gibbons Great idea! funny thing is, thats actually one of the strategies I have written down that i would like to take advantage of. Thanks for reminding me that i have more options.
@Brian Gibbons but now that i think about it, how would I make a profit on that if the arv is 92k and the loan balance is 89k. What if it needs 15k in repair. Not really any room to move around b/c the loan is so close to market value. Plus she is 4k in arrears.
Not sure if tho shells, but she filed chap 7 bankruptcy over 7 years ago and the bank said she isn't really responsible for the pmts. I guess she has an option to just let it go.
if there's no room in equity look at short sale vs ch 7 bk
@Brian Gibbons Ok thanks, Ill look into that as well.
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